Module I IMC Slides Ver 2.1

INTEGRATED MARKETING COMMUNICATION
MODULE -1 INTRODUCTION TO IMC

Christ Institute of Management Sem-III Batch - 2011-2013 Compiled by : Alex Daniel
Topics to be covered under the module

Meaning of IMC. Role of IMC in Marketing process Traditional Communication v/s IMC. Introduction to IMC tools Advertising, sales promotion, publicity, public relations, and event sponsorship; The role of advertising agencies and other marketing organizations providing marketing services Perspective on consumer behavior.
As Per AMA for over two decades: The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Revised Definition of Marketing In 2007 the AMA adopted a revised definition of marketing:
Marketing is the activity, set of institutions, and processes for creating, communicating, and delivering exchange offerings that have value for customers, clients, partners and society at large.
Christ Institute of Management
Sem-III
Batch - 2011-2013
Compiled by : Alex Daniel
What is Customer Value?

Value is the customers perception of all of the benefits of a product or service weighed against all the costs of acquiring and using it. Benefits can be functional, experiential or psychological.
Costs include the money paid for the product or service as well as other factors such as acquiring information, making the purchase, learning how to use a product/service, maintaining, and disposing of it.
What is IMC??
Don Schultz of Northwestern University says : IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, brand communications programs over time with consumers, customers, prospects, employees, associates and other targeted relevant external and internal audiences.
Sem-III
Batch - 2011-2013
Marketers now know
Shift from old school to new media
The value of strategically integrating the various communication functions rather than having them operate autonomously. How to target consumers through telemarketing, direct mail and direct response advertising due to growth and development of database marketing Demands for greater accountability from advertising agencies and compensation force agencies to consider a variety of communication tools and less expensive alternatives to mass media advertising.
Sem-III Batch - 2011-2013 Compiled by : Alex Daniel
Continued.
The rapid growth of the Internet changing the nature of how companies do business and how they communicate and interact with consumers.
Shift from only advertising-focused approaches based on mass media such as television and national magazines, to solve communication problems and more attention to smaller, targeted media alternatives.
Top Companies by Brand Value
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Batch - 2011-2013
Top Companies by Brand Value

Cont
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Batch - 2011-2013
Sem-III
Batch - 2011-2013
Promotion is defined as the coordination of all sellerinitiated efforts to set up channels of information and persuasion to sell goods and services or promote an idea. The promotional mix is defined as the basic tools or elements that are used to accomplish organizations objectives.
Advertising
Personal Selling
Direct Marketing
Publicity /Public Relations
Interactive/ Internet Marketing
Sales Promotion
Sem-III
Batch - 2011-2013
Advertising
Any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor.
Sem-III
Batch - 2011-2013
Advertising
Advantages Cost-effective way for communicating, particularly with large audiences. Differentiating similar products and services and a valuable tool for creating and maintaining brand equity Ability to strike responsive chord with audience through creative advertising Disadvantages The cost of producing and placing ads can be very high, particularly television commercials It can be difficult to determine the effectiveness of advertising There are credibility and image problems associated with advertising The vast number of ads has created clutter problems and consumers are not paying attention to much of the advertising they see and/or hear
Opportunity to leverage popular advertising campaigns into successful IMC programs ability to control the message
Sem-III
Batch - 2011-2013
The Most Common Forms of Advertising

1) Directed towards Consumers and 2) Directed towards Businesses
National Advertising done by large companies on a nationwide basis. Ads for well-known brands and companies shown on television
Retail / Local Advertsing done by retail and local merchants encouraging consumers to shop at a specific store, use a local service, or patronize a particular establishment
Primary v/s Selective Advertising primary demand advertising is designed to stimulate demand for the general product class or industry. Selective-demand focuses on creating demand for a specific company and/or its brands.
Sem-III
Batch - 2011-2013
Directed towards Businesses
Business-to-Business Advertising: advertising that targets individuals who buy or influence the purchase of industrial goods or services for their companies.
Professional advertising advertising targeted to professionals such doctors, lawyers, engineers, and the like.
Trade advertising targeted to marketing channel members such as wholesalers, distributors, and retailers.
Sem-III
Batch - 2011-2013
Direct Marketing
It is a system of marketing by which organizations communicate directly with target customers to generate a response and/or a transaction. Direct marketing has not traditionally been considered an element of the promotional mix.
Direct Mail
Internet Sales Direct Marketing
Shopping Channels
Catalogues
Direct Response Advertising
Tele marketing
Sem-III
Batch - 2011-2013
Direct Marketing
Advantages:
Changes in society (two-income households, greater use of credit) have made consumers more receptive to the convenience of direct-marketed products Allows a company to be very selective and target its marketing communications to specific customer segments. Messages can be customized to fit the needs of specific market segments Effectiveness of direct-marketing efforts are easier to assess than other forms of promotion
Disadvantages:
Consumers and businesses are being bombarded with unsolicited mail and phone calls which makes them less receptive to directmarketing Direct marketing has image problems. Problems with clutter as there are too many directmarketing messages competing for consumers attention
Sem-III
Batch - 2011-2013
Interactive/Internet Marketing
Interactive media allows back-and-forth flow of information whereby users can participate in and modify the content of the information they receive in real time.
Obtains customer database information Educates or informs customers
The Internet
Communicates and interacts with buyers A persuasive advertising medium Provides customer service and support A sales tool or an actual sales vehicle Builds and maintains customer relationships
Sem-III
Batch 2011-2013
Alex Daniel
Interactive/Internet Marketing
Advantages The Internet can be used for a variety of IMC functions including advertising, direct marketing, sales promotion, public relations and selling Messages can be tailored to appeal to the specific interests and needs of the target audience The interactive nature of the Internet leads to a higher degree of customer involvement when customers are visiting a web site.
Disadvantages The Internet is not yet a complete mass medium as only a quarter of Indian households have access to the Internet. Many Internet users do not pay attention to banner ads and the click-through rate on most is extremely low.
There is a great deal of clutter on the Internet which makes it difficult for advertising messages to be noticed and/or given attention.
Sem-III
Batch - 2011-2013
Sales Promotion
Marketing activities that provide extra value or incentive to the sales force, distributors, or the ultimate consumer and can stimulate immediate sales.
Sales promotion is generally broken into two major categories: consumer-oriented trade-oriented activities.
Sales Promotion
Can be..
Consumer-oriented
Coupons /Samples /Premiums Contest/Sweepstake Refunds/Rebates Bonus Packs /Loyalty Programs
Trade-oriented
Trade Allowances POP Displays / Training Programs
Events
Trade Shows Co-op Advertising
Sem-III
Batch - 2011-2013
Sales Promotion
Advantages Provides extra incentive to consumer or middlemen to purchase or stock and promote a brand
Disadvantages
Many companies are becoming too reliant on sales promotion and focusing too much attention on short-run marketing planning and performance Problems with sales promotion clutter as consumers are bombarded with too many coupons, contests, sweepstakes and other promotional offers In some industries promotion wars may develop whereby marketers sales promotion incentives extensively which results in lower profit margins and makes it difficult to sell products at full price
Batch - 2011-2013 Compiled by : Alex Daniel
Way of appealing to price sensitive consumer

Way of generating extra interest in product or ads
Sem-III
Publicity/Public Relations
Publicitynon-personal communications about an organization, product, service, or idea that is not directly paid for nor run under identified sponsorship.
Public Relationsa management function that evaluates public attitudes, identifies the public policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.
Publicity/Public Relations
Advantages
credibility of publicity is usually higher than other forms of marketing communication
low cost way of communicating often has news value and generates word-of-mouth discussion among consumers Can be negative as well as positive Disadvantages Lack of control over what is said, when, where and how it is said
Public relations generally has a broader objective than publicity, as its purpose is to establish and maintain a positive image of the company among its various publics
Publicity Vehicles
Feature Articles
News Releases
Interviews
Publicity Vehicles
Press Conference
Special Events
Sem-III
Batch - 2011-2013
Public Relations
Systematically planning and distributing information in an attempt to control and manage image and the nature of the publicity received. Activities of persons or organizations intended to promote understanding of and good will toward themselves or their products or services
Sem-III
Batch - 2011-2013
Public Relations
Publicity Vehicles Special Publications Community Activities Corporate Advertising
Cause-related Marketing
Special Event Sponsorship
Public Affairs Activities

Personal Selling
Personal Selling is a direct person-to-person communication whereby a seller attempts to assist and/or persuade prospective buyers to purchase a companys product or service or act on an idea. Unlike Advertising, personal selling involves direct contact between buyer and seller
Sem-III
Batch - 2011-2013
Personal Selling
Advantages Direct contact between buyer and seller allows for more communication flexibility Can tailor and adapt message to specific needs or situation of the customer Allows for more immediate and direct feedback Promotional efforts can be targeted to specific markets and customers who are best prospects.
Disadvantages
High cost per contact (depending on the industry) Expensive way to reach large audiences Difficult to have consistent and uniform message delivered to all customers
Sem-III
Batch - 2011-2013
Advertising Agencies
Advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for its clients.
ROLE OF ADVERTISING AGENCIES

Businesses, Corporations, Government Organizations and Non Profit set-ups hire advertising agencies to advertise their products, brands and services to present and prospective customers. 1) Understand the Product / Company
2 ) Plan & Create an Advertising Campaign 3 ) Strategize
An advertising Agency should :
Full Service Ad Agencies are well equipped to plan and create advertising campaigns for a range of media including TV commercials, Radio jingles, print advertisements etc.
Sem-III
Batch - 2011-2013
Services offered by ad agencies

Producing advertising Creating advertising Performing research
Planning advertising
Full range of marketing communication and promotion services
Selecting media
Sem-III
Batch - 2011-2013
Services offered by ad agencies

Direct marketing
Sales promotions Interactive capabilities
Package design
Strategic market planning
Non advertising services
Public relations and publicity
Sem-III
Batch - 2011-2013
Types of Ad Agencies
Full Service Research department, may include account planners, media dept. obtains media space, time, media planning and buying, sales promotion, creative services that includes Creation, execution of ads, copywriter artists, other specialists and interactive media
Sem-III
Batch - 2011-2013
Creative boutiques
These types of agencies specialize in and provide only advertising creative services. They have creative personnel such as writers or artists on staff but do not have media, research or account planning capabilities.
Media Specialist Companies

They specialize in buying media time, particularly radio and television time Because they purchase large amounts of time and space, they usually receive large discounts and can save the agency/company money on media purchases They are paid a fee or commission for their work The agency or client may often develop the media strategy
Methods of Agency Compensation
Commission method Fee or cost + Incentive-based systems Percentage Charges
Sem-III
Batch - 2011-2013
Top Advertising Companies of India 2011

Ogilvy and Mather J Walter Thompson India Mudra Communication Pvt. Ltd FCB-Ulka Advertising Ltd Rediffusion-DY&R McCann-Erickson India Ltd RK Swamy/BBDO Advertising Ltd
Sem-III
Batch - 2011-2013
Thank you!
Sem-III
Batch - 2011-2013

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INTEGRATED MARKETING COMMUNICATION

MODULE -1 INTRODUCTION TO IMC

Topics to be covered under the module

Christ Institute of Management

Compiled by : Alex Daniel

What is Customer Value?

Christ Institute of Management

Compiled by : Alex Daniel

Marketers now know

Shift from old school to new media

Christ Institute of Management

Top Companies by Brand Value

Christ Institute of Management

Compiled by : Alex Daniel

Top Companies by Brand Value

Christ Institute of Management

Compiled by : Alex Daniel

Christ Institute of Management

Compiled by : Alex Daniel

Publicity /Public Relations

Interactive/ Internet Marketing

Christ Institute of Management

Compiled by : Alex Daniel

Christ Institute of Management

Compiled by : Alex Daniel

Christ Institute of Management

Compiled by : Alex Daniel

The Most Common Forms of Advertising

Christ Institute of Management

Compiled by : Alex Daniel

Directed towards Businesses

Christ Institute of Management

Compiled by : Alex Daniel

Direct Response Advertising

Christ Institute of Management

Compiled by : Alex Daniel

Christ Institute of Management

Compiled by : Alex Daniel

Christ Institute of Management

Christ Institute of Management

Compiled by : Alex Daniel

Trade Shows Co-op Advertising

Christ Institute of Management

Compiled by : Alex Daniel

Way of appealing to price sensitive consumer

Christ Institute of Management

Christ Institute of Management

Compiled by : Alex Daniel

Christ Institute of Management

Compiled by : Alex Daniel

Public Affairs Activities

Christ Institute of Management

Compiled by : Alex Daniel

Christ Institute of Management

Compiled by : Alex Daniel

ROLE OF ADVERTISING AGENCIES

An advertising Agency should :

Christ Institute of Management

Compiled by : Alex Daniel

Services offered by ad agencies

Full range of marketing communication and promotion services

Christ Institute of Management

Compiled by : Alex Daniel

Services offered by ad agencies